Edtech major Byju’s has deferred the final settlement of laid-off employees from September to November. The development comes amidst the recent US lawsuit, alleging it of hiding USD 538 million.
The company laid off nearly 1,000 employees across various departments, including mentoring, logistics, training, sales, post-sale and finance in June. Byju’s explained that this decision was a strategic move towards achieving profitability. However, the company’s strained relations with investors in meeting funding demands were said to be the cause behind the decision.
According to media reports, the laid-off employees were informed by the management that they would receive salaries for both June and July along with incentives by September 15. This remuneration was meant to be their final settlement fees.
However, the impacted employees received an email on September 14, notifying them of a delay in disbursing the fees. The email stated that the outstanding amount would be credited by November 17, as reported by the media.
Recently, Byju’s submitted a proposal to its lenders, appealing to fully settle its USD 1.2 billion term loan B within the next six months. It is likely to settle the amount if USD 300 million is paid over the next three months.
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